FINTECH HELP FOR LOW-INCOME AMERICANS

Before Chen formed proppel and launched its signature free app, EBT Fresh, in 2016, the convenience of mobile banking had passed food-stamp recipients by. Even though benefits are awarded in the form of an Electronic Benefit Transfer card, which acts like a prepaid debit card loaded with food stamps or cash, the more than 41 million people who participate in SNAP, the U.S. food stamp program, had no way of checking their benefits balance except by calling a toll-free number or manually re-logging into a website each time.

“I wondered why there wasn’t a mobile banking app for the EBT card,” says Chen. “You probably don’t call your bank to check the balance of your account, why should you have to call the EBT card to know your balance?”

The app is now used by more than 5 million SNAP households and has helped SNAP recipients extend their benefits an extra day per month on average, a Harvard study found. This summer Chen launched a major expansion of the platform, now renamed Providers. Among the new offerings: a free debit account with no monthly overdraft, minimum balance or inactivity fees; information and updates on government programs; direct deposit of income and benefits, in some cases, three to five days early; and personalized discounts. To support the service, the company sells ads from health care, grocery and food companies. Says nominator Shannon Austin, a fintech consultant: “Propel proves you can do good and also do well, and that technology has the potential to dramatically improve the financial lives of those who struggle.”—k.r.